Crude Woes: Transocean to Make 110 Employees Redundant

Transocean Ltd. RIG informed the Texas Workforce Commission that it is planning to slash 110 workers as it was unable to acquire a new contract for its Discover Installation drillship due to weak oil prices.

The employees to be terminated are currently working on the Discoverer Inspiration, an ultra-deepwater drillship operating in international waters off the Gulf of Mexico.The rig will complete its current operating deal and will be laid off after its contract ends.

The lay-offs are regarded as permanent by the company and will commence on Sep 15. Meanwhile, this Switzerland-based Transocean might consider taking back some of the affected employees if it inks a new deal for the Discoverer Inspiration.

The employees to be given the marching orders will earn a severance sop. However, in absence of the bumping rights, staff at more senior ranks cannot replace their subordinates.

For a while now, the oil industry is reeling under the adverse impact of coronavirus pandemic that crippled most sectors until now. Fuel demand took a huge hit following large-scale travel constraints imposed globally. Against this backdrop of a pullback in oil prices, Transocean's stock price has shed 74.3% of value since the beginning of 2020 when crude was trading at more than $60 a barrel.

Company Profile

Transocean is the world’s largest offshore drilling contractor and a leading provider of drilling management services. The company provides rigs on a contractual basis to explore and develop oil and gas. Transocean offers offshore drilling rigs, equipment, services and manpower (with particular emphasis on ultra-deepwater and harsh environment drilling services) to exploration and production companies worldwide.

Zacks Rank & Key Picks

Transocean currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Gulfport Energy Corporation GPOR, Cheniere Energy, Inc. LNG and Chevron Corporation CVX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favoritestock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Transocean Ltd. (RIG): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
Gulfport Energy Corporation (GPOR): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.